Reviewing UMH Properties (NYSE:UMH) & Gadsden Properties (OTCMKTS:GADS)

UMH Properties (NYSE:UMH – Get Free Report) and Gadsden Properties (OTCMKTS:GADS – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Earnings and Valuation

This table compares UMH Properties and Gadsden Properties”s gross revenue, earnings per share and valuation.

UMH Properties has higher revenue and earnings than Gadsden Properties.

Institutional & Insider Ownership

75.4% of UMH Properties shares are held by institutional investors. 8.8% of UMH Properties shares are held by insiders. Comparatively, 5.0% of Gadsden Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for UMH Properties and Gadsden Properties, as reported by MarketBeat.com.

UMH Properties currently has a consensus target price of $18.20, suggesting a potential upside of 16.11%. Given UMH Properties’ stronger consensus rating and higher possible upside, equities analysts clearly believe UMH Properties is more favorable than Gadsden Properties.

Volatility and Risk

UMH Properties has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Gadsden Properties has a beta of -8.93, suggesting that its share price is 993% less volatile than the S&P 500.

Profitability

This table compares UMH Properties and Gadsden Properties’ net margins, return on equity and return on assets.

Summary

UMH Properties beats Gadsden Properties on 10 of the 10 factors compared between the two stocks.

About UMH Properties

(Get Free Report)

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate

About Gadsden Properties

(Get Free Report)

Gadsden Properties, Inc. is a Nevada corporation that was formed on December 28, 2010. Gadsden concentrates primarily on investments in high quality income-producing assets, residential developments and other opportunistic commercial properties in secondary and tertiary markets across the United States. The Company derives value from smaller, flexible retail investments that range from $5 million to $50 million and off-market mixed-use properties ranging from $50 million to $250 million. As a result of this chosen strategy, we believe that Gadsden is developing a unique competitive advantage that generally allows the Company to invest in markets and assets that are often overlooked by larger institutional investors, such as publicly-traded REITs and other large institutional investors. As part of its strategy, Gadsden attracts specific sellers that prefer the tax deferral advantages offered through issuing operating partnership units in exchange for their properties. These real estate assets are typically operated by independent owners that are seeking to monetize their real estate holdings, and who are typically not well capitalized or well-seasoned real estate operators. These transactions create a variety of outcomes for Gadsden and the sellers typically resulting in lease-up and value-added opportunities that may not be otherwise achieved.